Japan’s Uniqlo is set for its best year ever in North America.

The flagship brand of Fast Retailing is poised to book its first annual profit in North America - after 17 years of trying - aided by a revamp of its logistics and pricing strategy, introduced during the pandemic, and essentially halting discounting.

Uniqlo used the pandemic as a chance to scratch everything and start over in North America. Critically, Uniqlo stopped almost all discounting, essentially retraining its customers to get used to flat pricing.Instead, the company has put renewed focus on basic clothing items like loungewear and lean inventory management, setting up an automated warehousing system that linked inventory at its physical stores and e-commerce shops.

Uniqlo has also increased use of more expensive air freight to cut lead times for popular items and avoid logistics snarls caused by the pandemic. The attempt is to get products into the warehouse in the shortest possible time, even if it’s by air.

Away from the warehouse, the company’s stores are looking brighter and more attuned to American tastes than before. Uniqlo, best known for fleeces and inexpensive basics, first entered North American in 2005 and now plans to open 30 stores a year until it reaches 200 in the next five years.